The powerpoint already covered most aspect of the bretton woods system. Your job is summerizing the ppt and add some content. Don’t need to worry about plagiarism in this paper, but don’t copy the full sentence from other sources.I’ll upload the ppt after bidding
Unformatted Attachment Preview
The Bretton Woods system was a remarkable achievement of global
coordination. It established the U.S dollar as the global currency, taking
the world off of the gold standard. It created the World bank and
the International Monetary Fund. These two global organizations
would monitor the new system.
Bretton Woods established America as the dominant power behind
these two organizations and the world economy. That’s because it
replaced the gold standard with the U.S. dollar. After the agreement
was signed, America was the only country with the ability to print
Bretton Woods Agreement
The Bretton Woods agreement was created in a 1944 conference of all of the World War II
Allied nations. It took place in Bretton Woods, New Hampshire. Under the agreement,
countries promised that their central banks would maintain fixed exchange rate between
their currencies and the dollar.
Members of the Bretton Woods system agreed to avoid any trade warfare. For example,
they wouldn’t lower their currencies strictly to increase trade.
But they could regulate their currencies under certain conditions. For example, they could
take action if foreign direct investment began to destabilize their economies. They could
also adjust their currency values to rebuild after a war.
If a country’s currency value
became too weak relative to
the dollar, the bank would
buy up its currency in foreign
exchange market. That
would decrease the supply,
which would raise the price.
If its currency became too
high, the bank would print
more. That would increase
the supply and lower its
How to maintain a fixed exchange
rate between other currencies
and the dollar
By that time, the US had
accumulated over 70% of the
gold reserves of the world
about 20 thousand metric
The US promised the
participating nations that the
dollar is convertible to gold
The US had the most powerful
economy, which was based on
production and services
Why the U.S dollar was
WW2 had significant negative
impact on many European
countries, economy recovery
is necessary for them
Results of the Agreement
The US dollar was established as an international reserve currency
The US dollar was backed by gold at a price of $35 per ounce and any country could exchange
dollars for gold
The International Monetary Fund (IMF) was formed to monitor and regulate financial
operations in the world and provide loans, often in the form of bailout funds, to balance out
fiscal deficits of nations
The World Bank was formed to finance the capital needed by developing countries for national
development programmes (ranging from infrastructure projects such as roads and highways to
social projects such as disease prevention and education)
Due to money flowing out of the country through the Marshall Plan, U.S. military
budget and Americans buying foreign goods, the number of U.S dollar in circulation
exceeded the amount of gold that was backing them up in 1959.
In 1960s, a Yale professor Robert Triffin sat in front of Congress Economic Committee and
calmly announced that the Bretton Woods system was doomed. The dollar could not
survive as the worlds reserve currency without requiring the United States to run evergrowing deficits. And his Triffin dilemma explained the conflict of Bretton woods system.
Explanation of Triffin Dilemma
Triffin Dilemma point out the uncertainty and the potential crisis of Bretton Woods System. In this system,
dollar is linked to gold, other currencies are linked to the U.S dollar. In this situation, there are two requirements
for U.S dollar:
First, the US dollar circulating in the international market is sufficient to meet the needs of international trade
reserves. With the development of the world economy, the U.S. dollar required for international trade
continues to rise. Therefore, the U.S. must have a trade deficit and output dollars to other countries.
Second, as the global reserve currency, dollar has to be stable and strong, which means the U.S should have a
long-term trade surplus.
The two requirements are contradictory, so Triffin Dilemma determines the inevitability of the collapse of
Bretton Woods system.
The collapse of Bretton Woods System
In late 1960s, there was a dollar oversupply in the world economy. The US balance of
payments deficit was caused by expansionary fiscal policy. The spending of the US
government increased for three reasons: 1.the war in Vietnam; 2.welfare expenditure;
3 the space race with the USSR (send humans to the moon by the end of the 1960s).
In 1971, the United States was suffering from massive stagflation. That’s a deadly
combination of inflation and recession. It was partly a result of the dollar’s role as a
global currency. In response, President Nixon started to deflate the dollar’s value in
gold. But the plan backfired. In 1973, Nixon unhooked the value of the dollar from gold
altogether. Without price controls, gold quickly shot up to $120 per ounce in the free
market. The Bretton Woods system was over.
Purchase answer to see full
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.